Total net revenue was an all-time quarterly record $33.9 million,
compared to total net revenue of $31.0 million in the comparable
prior-year period.

Recurring revenues (which are comprised of support, maintenance and
subscription services) were $16.7 million, or 49% of total net
revenue, compared to $14.9 million, or 48% of total net revenue, for
the same period in fiscal 2017. SaaS (News - Alert) revenues increased 58% year over
year and comprised 29% of total recurring revenues, compared to 20% of
total recurring revenues in the first quarter of fiscal 2017.

Gross margin was 49.2% in the fiscal 2018 first quarter, compared to
52.3% in the prior-year period. The decrease in the Company's fiscal
2018 first quarter gross margin primarily reflects the previously
disclosed impact of the amortization of software development costs for
first generation versions of the Company's rGuest® solutions, which
achieved general availability in the first half of fiscal 2017. Gross
margin in the fiscal 2018 first quarter was also impacted by lower
gross profit margin for professional services revenue reflecting a
re-deployment of internal resources into billable functions under a
restructuring of the Company's professional services workforce into
teams which Agilysys believes will enable more customer-centric
services going forward.

Net loss in the fiscal 2018 first quarter was $(3.0) million, or
$(0.13) per diluted share, compared to a net loss of $(2.3) million,
or $(0.10) per diluted share, in the prior-year period.

Adjusted EBITDA (non-GAAP) was $1.6 million, compared to Adjusted
EBITDA of $0.4 million in the same period last year (see
reconciliation below).

Adjusted earnings from operations (non-GAAP) was $(3.5) million,
compared to Adjusted earnings from operations of $(3.2) million in the
prior-year period (see reconciliation below).

Ramesh Srinivasan, President and CEO of Agilysys, commented, "Fiscal
2018 is off to a good start as we generated our highest ever quarterly
revenue from continuing operations in the first quarter, while also
making solid progress on our growth and cost management initiatives.
Following a challenging end to the previous fiscal year, we are
continuing to successfully implement various strategic initiatives
targeting critical aspects of our business to transition Agilysys into a
customer-centric, engineering-driven, and product innovation focused
profitable company. In this regard, we continue to successfully
implement initiatives that will result in our becoming significantly
more cost effective and efficient in our execution. We also remain
committed to investing prudently in various areas to drive growth in the
business.

"We expect our overall financial performance will significantly improve
towards the latter part of the year as the progress we have made to date
against our operating initiatives strengthens our expectation that we
will achieve positive adjusted earnings from operations during the
fiscal 2018 fourth quarter. I am confident we are on the right path
towards transforming Agilysys into a larger player in the hospitality
software solutions market world-wide in a disciplined and profitable
manner."

Reiterates Fiscal 2018 Outlook

Agilysys today reiterated its guidance for fiscal 2018 full year revenue
of $136 million to $140 million, which represents growth of
approximately 7% to 10%. In addition, the Company continues to expect
that it will generate positive Adjusted Earnings from Operations
(non-GAAP measure) in the fourth quarter of fiscal 2018.

The Company defines adjusted earnings from operations as adjusted
EBITDA, less capital expenditures and capitalized software development
costs, which management believes is a meaningful measure of earnings and
provides insight to investors on the Company's overall profitability and
cash generation from core operations. Adjusted earnings from operations
includes costs for capitalized efforts while minimizing the seasonality
of the Company's cash flows due to timing of billing.

Tony Pritchett, Chief Financial Officer, commented, "Our financial
performance in the first quarter as well as our expectation for full
year revenue growth and ongoing focus on prudent expense management are
important factors that will continue to position Agilysys on a path to
profitability. We made important progress in the first quarter with
initiatives that will result in a lower overall spend rate as a
percentage of revenue and believe that the benefits from these
initiatives will accelerate as the year progresses. Combined with our
strong balance sheet, including over $43 million in cash and cash
equivalents and no debt, our strategies are positioning the Company to
unlock value for our shareholders."

2018 First Quarter Conference Call and Webcast

Agilysys is hosting a conference call and webcast today, August 3, 2017,
beginning at 4:30 p.m. ET. Both the call and the webcast are open to the
public. The conference call number is 224-357-2393 (domestic or
international); and the conference ID number is 52193940. Please call
five minutes prior to the presentation to ensure that you are connected.

Interested parties may also access the conference call live on the
Internet at Agilysys
Events & Presentations. Approximately, two hours after the call
has concluded, an archived version of the webcast will be available for
replay at the same location.

Forward-Looking Language

This press release contains "forward-looking statements" within the
meaning of the safe harbor provisions of the U.S. Private Securities
Litigation Reform Act of 1995. Forward-looking statements can be
identified by words such as: "anticipate," "intend," "plan," "goal,"
"seek," "believe," "project," "estimate," "expect," "strategy,"
"future," "likely," "may," "should," "will" and similar references to
future periods. Examples of forward-looking statements include, among
others, statements we make regarding guidance relating to revenue and
adjusted earnings from operations, and expected results of strategic and
operating initiatives, such as improvements in cost management and lower
spending rates.

Forward-looking statements are neither historical facts nor assurances
of future performance. Instead, they are based only on our current
beliefs, expectations and assumptions regarding the future of our
business, future plans and strategies, projections, anticipated events
and trends, the economy and other future conditions. Because
forward-looking statements relate to the future, they are subject to
inherent uncertainties, risks and changes in circumstances that are
difficult to predict and many of which are outside of our control. Our
actual results and financial condition may differ materially from those
indicated in the forward-looking statements. Therefore, you should not
rely on any of these forward-looking statements. Important factors that
could cause our actual results and financial condition to differ
materially from those indicated in the forward-looking statements
include, among others, our ability to achieve operational efficiencies
and meet customer demand for products and services and the risks
described in the Company's filings with the Securities and Exchange
Commission, including the Company's reports on Form 10-K and Form 10-Q.

Any forward-looking statement made by us in this press release is based
only on information currently available to us and speaks only as of the
date on which it is made. We undertake no obligation to publicly update
any forward-looking statement that may be made from time to time,
whether written or oral, whether as a result of new information, future
developments or otherwise.

Use of Non-GAAP Financial Information

To supplement the unaudited condensed consolidated financial statements
presented in accordance with U.S. GAAP in this press release, certain
non-GAAP financial measures as defined by the SEC (News - Alert) rules are used. These
non-GAAP financial measures include adjusted EBITDA and adjusted
earnings from operations. Management believes that such information can
enhance investors' understanding of the company's ongoing operations.
See the accompanying table below for a reconciliation of adjusted EBITDA
and adjusted earnings from operations to the most closely related GAAP
measure.

About Agilysys

Agilysys is a leading technology company that provides innovative
point-of-sale, property management, inventory and procurement, workforce
management, analytics, document management and mobile and wireless
solutions and services to the hospitality industry. The company's
solutions and services allow property managers to better connect,
interact and transact with their customers by streamlining operations,
improving efficiency, increasing guest recruitment and wallet share, and
enhancing the guest experience. Agilysys serves four major market
sectors: Gaming, both corporate and tribal; Hotels, Resorts and Cruise;
Foodservice Management; and Restaurants, Universities, Stadia and
Healthcare. Agilysys operates throughout North America, Europe and Asia,
with corporate services located in Alpharetta, GA. For more information,
visit www.agilysys.com.

- Financial tables follow -

AGILYSYS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

(In thousands, except per share data)

Three Months Ended

June 30,

2017

2016

Net revenue:

Products

$

10,283

$

9,520

Support, maintenance and subscription services

16,667

14,948

Professional services

6,915

6,485

Total net revenue

33,865

30,953

Cost of goods sold:

Products (inclusive of developed technology amortization)

7,624

6,532

Support, maintenance and subscription services

4,035

3,856

Professional services

5,536

4,374

Total cost of goods sold

17,195

14,762

Gross profit

16,670

16,191

Gross profit margin

49.2

%

52.3

%

Operating expenses:

Product development

6,626

6,855

Sales and marketing

5,130

5,633

General and administrative

6,800

4,873

Depreciation of fixed assets

611

598

Amortization of intangibles

485

336

Restructuring, severance and other charges

37

89

Operating loss

(3,019

)

(2,194

)

Other (income) expense:

Interest income

(28

)

(33

)

Interest expense

2

4

Other expense, net

(113

)

90

Loss before taxes

(2,880

)

(2,255

)

Income tax expense (benefit)

78

42

Net loss

$

(2,958

)

$

(2,297

)

Weighted average shares outstanding

22,720

22,599

Loss per share - basic and diluted:

Loss per share

$

(0.13

)

$

(0.10

)

Weighted average shares outstanding - diluted

22,720

22,599

Net income (loss) per share - diluted:

Net income (loss) per share

$

(0.13

)

$

(0.10

)

AGILYSYS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(In thousands, except share data)

June 30,

March 31,

2017

2017

ASSETS

Current assets:

Cash and cash equivalents

$

43,408

$

49,255

Accounts receivable, net of allowance for doubtful accounts of
$759 and $509,respectively